Document background
The Protective Covenant Agreement serves as a crucial legal instrument for organizations operating in India to protect their legitimate business interests, confidential information, and competitive advantage. This document is typically used when engaging employees, contractors, or business partners who will have access to sensitive information or key business relationships. The agreement must be carefully drafted to comply with Indian legal requirements, particularly considering that Indian courts generally only enforce reasonable restrictions that are necessary to protect legitimate business interests. The document includes provisions for confidentiality, non-competition, and non-solicitation, while ensuring compliance with Section 27 of the Indian Contract Act, 1872, which renders agreements in restraint of trade void unless they fall within specific exceptions. The agreement's terms must be reasonable in duration, geographical scope, and subject matter to enhance enforceability under Indian law.
